Exclusivity and Cause-Related Marketing

On the Horns of a Dilemma

Seattle Kids’s Hospital is a part of Kids’s Miracle Community (CMN), which raises greater than $225 million a 12 months on behalf of its 170 affiliated hospitals in america and Canada. As CMN proudly factors out, a lot of the greatest kids’s hospitals in North America’s are affiliated with CMN.

One of many issues CMN asks of its taking part hospitals is that after they land a sponsor which might turn into a regional or nationwide sponsor that they share. A goodly variety of CMN’s largest nationwide sponsors had been introduced on in precisely that manner. And certainly the workers that runs the CMN program for Seattle Kids’s Hospital did simply that.  Walmart online schedule

However there was snafu. Not lengthy earlier than, Arkansas Kids’s Hospital in Little Rock had introduced Wal-Mart to CMN. Costco is maybe the one mass service provider retailer that Wal-Mart has by no means overwhelmed in america and Wal-Mart’s Sam’s Membership unit is a fierce (albeit smaller) rival of Costco.

CMN affords sponsors class exclusivity and with each retailers in the identical grouping one thing needed to give. The nationwide workplace of CMN was on the horns of a dilemma. Whereas Costco was an efficient fundraiser in Seattle, Costco shops at the moment had been closely weighted within the Western U.S. Each retailers had been giants, however Wal-Mart was already really nationwide.

In the end CMN went with the larger big. It was the precise resolution when it comes to cash. Wal-Mart raises roughly $30 million a 12 months for CMN, greater than it offers to United Approach or anybody else. Wal-Mart is CMN’s largest sponsor by an element of four or 5.

In the meantime, as an alternative of feeling rebuffed, Costco went proper on fundraising for Seattle Kids’s and ultimately 24 different kids’s hospitals in North America, all of that are affiliated with Kids’s Miracle Community. I do not know the precise quantity, however I estimate that these 24 different kids’s hospitals break up one thing north of $5 million a 12 months and maybe as a lot as $eight million or extra a 12 months.

In different phrases, Costco is nearly actually amongst CMN’s prime 5 largest sponsors. It could even be quantity two!

The end result has been some awkward conditions. Like perpetually operating into the individual you critically dated earlier than you married another person.

Neither CMN’s U.S. web site or press supplies listing Costco as a sponsor. CMN’s Canadian web site lists Costco as a sponsor, however snubs ’em by not together with a hyperlink to Costco’s web site, a courtesy it extends to each different sponsor.

At CMN’s annual conferences for its affiliated hospitals they conduct fundraising classes for every sponsor besides Costco. The 25 hospitals as an alternative get collectively independently of Kids’s Miracle Community through the annual assembly to share concepts and greatest practices.

Likewise, throughout CMN’s annual tv present Celebration, Costco isn’t acknowledged on the nationwide present. However it’s acknowledged in native markets by the 25 kids’s hospitals.
In the meantime Costco’s web site says “the United Approach and Kids’s Miracle Community are vital to our charitable giving.”

So if CMN someway manages to drag in multi-millions from two opponents, why increase the difficulty?

I increase it as a result of there’s not many Costco’s on this world. CMN is lucky… fortunate even… that Costco does as a lot as they do for comparatively little in return.

Extra to the purpose, in the event you’re simply beginning to promote sponsorships it is advisable suppose very onerous about providing exclusivity. The benefit of exclusivity for a nonprofit is that it offers a sponsor assurances that your charity won’t strategy opponents. The benefit to nonprofits is that you may ask for extra money in return.